New Year, New Home – Self-employed reminded about changes to SA302

With many people looking to get on to the housing ladder in 2018, it has never been more important to have easy access to a mortgage.

However, since HM Revenue & Customs (HMRC) changed the way it issues details of tax calculations and tax year overviews for submission with mortgage applications last year, self-employed workers in the UK have found it harder to get a mortgage.

Before 4 September 2017, self-employed workers and their accountants had been able to get a paper copy of form SA302 that lenders require in order to complete the mortgage application process.

This has restricted the number of lenders that will offer a mortgage to self-employed workers, with initial reports suggesting that lenders are still insisting on original paper copies rather than electronic printouts, despite HMRC undertaking discussions with UK Finance, formerly the Council of Mortgage Lenders, about lenders’ requirements.

When submitting information to eligible mortgage lenders, self-employed individuals and their advisers are now required to supply the relevant year’s tax computation, printed from the adviser’s software, along with the tax year overview that advisers can print from HMRC’s online services page in order to act as a self-serve SA302 that will satisfy lenders.

Many accountants are therefore reminding self-employed individuals to check their lender’s requirements before making an application.